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Nokia (NOK) to Power U.S. Cellular's Network With 5G SA Core

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Nokia Corporation NOK has extended its partnership with United States Cellular Corporation USM for the deployment of 5G standalone (5G SA) core network. The deployment initiative will enable the telco to capitalize on Nokia’s diverse portfolio of hardware, software, and services for the proper functioning of the 5G SA core network.

With exponential growth in connected devices, operators are continuously striving to deploy a streamlined network infrastructure on the back of superior technologies. This enables service providers to seamlessly migrate toward mobile core network that not only ensures the best return on investments but also delivers the required performance for new use cases. Nokia’s 5G SA core is one such solution that offers the utmost performance and efficiency gains.

Nokia’s 5G SA core is equipped with a cloud-native architecture that offers ultra-reliable connectivity and low latency performance with faster introduction of future network functions. All these components are critical to the success of Industry 4.0 while paving the path for new revenue opportunities. The platform enables an automation framework that leverages artificial intelligence/machine learning algorithms to detect network faults. This helps in reducing day-to-day operational overheads.

Supported by such robust characteristics, U.S. Cellular customers will be able to access innovative applications such as virtual and augmented reality with high speeds and low latencies, thereby unleashing the full potential of 5G. Per the partnership, Nokia’s right mix of hardware, software, and services will enable the Chicago, IL-based telco to deliver a best-in-class wireless experience to its business and residential customers.

U.S. Cellular and Nokia have been sharing an active working relationship for quite some time now. The telco had previously relied on Nokia’s networking technology solutions for establishing a seamless communications infrastructure. U.S. Cellular had also collaborated with the Finland-based telecom equipment vendor for successfully conducting field trials related to the installation of 5G mmWave solution.

Nokia already supplies its AirScale radios for both low-band and mmWave 5G to U.S. Cellular to support the latter’s Radio Access Network, and the 5G core implementation further reinforces the alliance. The deployment of 5G SA core, which will benefit nearly 5 million U.S. Cellular customers, is anticipated to be completed by the end of 2022. With that, the network modernization initiative is expected to not only improve U.S. Cellular’s network but also strengthen Nokia’s momentum in the North American standalone 5G core market.

Nokia is well-positioned to benefit from the growing demand for next-generation connectivity. It has made meaningful progress in its three-phased journey of value creation. Its focus on capital allocation and technology leadership in 2021 is likely to help it grow in 2022 and beyond. The company aims to accelerate its product roadmaps and cost competitiveness through additional 5G investments. All these factors bode well for the company’s long-term growth.

The Zacks Rank #3 (Hold) stock has returned 44.2% in the past year compared with the industry’s growth of 31.1%.

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Some better-ranked stocks in the industry are Clearfield, Inc. CLFD and InterDigital, Inc. IDCC, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Clearfield pulled off a trailing four-quarter earnings surprise of 49%, on average.

InterDigital pulled off a trailing four-quarter earnings surprise of 536%, on average.


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United States Cellular Corporation (USM) : Free Stock Analysis Report

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InterDigital, Inc. (IDCC) : Free Stock Analysis Report

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